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Spatial and Temporal Diffusion of Housing Prices in the Presence of a Linguistic Border: Evidence from Belgium

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  • Roel Helgers
  • Erik Buyst

Abstract

This paper investigates the ripple effect hypothesis for Belgium and is especially interested in the existence of potential border effects arising from the language border that divides the country in two large linguistic regions, Flanders and Wallonia. We find that housing prices in districts located along the north-south axis are highly integrated, while those in more peripheral eastern and western districts converge almost exclusively with neighbouring districts in the same linguistic region. Where a similar model might only applied to a few multilingual countries, we provide some valuable insights on the mechanisms responsible for the observed ripple—and border effects.

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  • Roel Helgers & Erik Buyst, 2016. "Spatial and Temporal Diffusion of Housing Prices in the Presence of a Linguistic Border: Evidence from Belgium," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(1), pages 92-122, March.
    • Handle: RePEc:taf:specan:v:11:y:2016:i:1:p:92-122
    DOI: 10.1080/17421772.2016.1102961
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    3. Gong, Yunlong & Hu, Jinxing & Boelhouwer, Peter J., 2016. "Spatial interrelations of Chinese housing markets: Spatial causality, convergence and diffusion," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 103-117.
    4. I-Chun Tsai, 2019. "Interregional correlations in the US housing market at three price tiers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 1-24, August.
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    6. Xinyue Yang & Martin Odening & Matthias Ritter, 2019. "The Spatial and Temporal Diffusion of Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 95(1), pages 108-123.
    7. Adam, Arnaud & Finance, Olivier & Thomas, Isabelle, 2021. "Monitoring trucks to reveal Belgian geographical structures and dynamics: From GPS traces to spatial interactions," Journal of Transport Geography, Elsevier, vol. 91(C).
    8. Nong, Huifu & Yu, Ziliang & Li, Yang, 2024. "Financial shock transmission in China's banking and housing sectors: A network analysis," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 701-723.
    9. Cheng-Wen Lee & Shu-Hen Chiang & Zhong-Qin Wen, 2023. "Pursuing the Sustainability of Real Estate Market: The Case of Chinese Land Resources Diversification," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    10. Ryan R. Brady, 2021. "Direct Forecasting for Applied Regional Analysis," Departmental Working Papers 67, United States Naval Academy Department of Economics.
    11. Williams, Joseph, 2018. "Housing markets with endogenous search: Theory and implications," Journal of Urban Economics, Elsevier, vol. 105(C), pages 107-120.

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